October 19, 2013
Go to “Investments Core Portfolio” for current holdings.
IBM Watching to buy at lower prices.
GYLD Wait for lower price.
Multi asset income ETFs are a relatively new income vehicle. GYLD follows a multi-asset strategy comprised of an equally weighted exposure across five global yield categories, including global sovereign debt, global corporate debt, global alternatives, global real estate and global equities. With a single purchase the investor gains access to approximately 150 dividend paying holdings. Even if the small investor were to buy all 150 holdings on an individual basis for $1000 each, it would cost you $150,000 not to mention the added trading expenses,…. and the research time involved. That is obviously crazy. Furthermore, there is no way anyone can monitor this many investments.
As a small investor you could buy a reasonable 100 shares of GYLD for around $2600.00 and get wide exposure to a lot of companies.
There are a small number of players in this market: GYLD, CVY, IYLD and MDIV. You can research all of these to determine what works best for you. Each is different from the others. I plan on following Arrow Dow Jones Global Yield ETF GYLD (global yield). GYLD offers the ‘small portfolio’ investor the opportunity to instantly gain a huge amount of diversification (150 holdings). Even the large portfolio investor may find GYLD to be an enticing investment for a small part of the portfolio money.
GYLD holds a large chunk of corporate bonds which are relatively safe and offer high dividends. I really like corporates.
GYLD is paying 6.5% and also pays dividends monthly, which is a super benefit.
(Update: After i mentioned GYLD it skyrocketed out of buying range-it should drop below $26.00 within the next few months.) GYLD can be purchased now. BUT I would wait for another pullback for lower prices, which may come as soon as January when the stooges in Washington confront the debt situation again. Or wait for the next ex-dividend date next month in hopes of a pullback.
(Update) PRINCETON, NJ — President Barack Obama averaged a 44.5% job approval rating during his 19th quarter in office, a decline of more than three percentage points from his 18th quarter. That is one of the largest quarter-to-quarter declines of his presidency, behind a nine-point drop in his third quarter and a six-point drop in his 11th quarter.
If you have a stock or investment to recommend, and want feedback, hit “LEAVE A COMMENT” above. Go to “HOME” (top of page) for the most current posts. Go To +FOLLOW at the top of this page to follow this blog. (Please respond to POLL Click Here) This blog discusses dividend paying investments that I find appropriate for myself…..and for investors seeking dividends and income. I am not an investment professional. You must do your own research before buying any position. All gains or losses that you realize are based on your choices.